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How reported DeRozan addition impacts Kings’ NBA luxury-tax scenario

July 7, 2024
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How reported DeRozan addition impacts Kings’ NBA luxury-tax scenario initially appeared on NBC Sports activities Bay Space

After the Kings reportedly acquired DeMar DeRozan in a three-team sign-and-trade, the place precisely does that go away them on the subject of the NBA’s luxurious tax?

DeRozan reportedly will signal a three-year, $76 million contract with the Kings, TNT’s Chris Haynes reported Saturday — ESPN’s Adrian Wojnarowski has the deal at three years and $74 million — as a part of the transfer that may push Sacramento close to the $170.8 million luxury-tax threshold for the 2024-25 NBA season.

The Kings at present are $5.1 million beneath the posh tax, and can keep away from the edge in the event that they signal two veteran-minumum gamers, ESPN’s Bobby Marks reported Saturday.

Sacramento Offseason with DeMar DeRozan

The Kings are $5.1M beneath the tax and can keep away from the edge as soon as they signal 2 veteran minimal gamers. pic.twitter.com/7Qd1mnYO0g

— Bobby Marks (@BobbyMarks42) July 7, 2024

Together with potential bonuses for DeRozan, Domantas Sabonis and Trey Lyles — which Marks notes can be unlikely for 3 gamers to hit — Sacramento nonetheless would fall beneath the luxury-tax threshold at a projected 2024-25 wage complete of 168.9 million.

After a busy offseason that included the reported addition of DeRozan and retaining Malik Monk, the Kings nonetheless have a particularly useful asset within the non-taxpayer mid-level exception, which may show attractive to any potential free brokers nonetheless in the marketplace. Nevertheless, ought to Sacramento resolve to make use of that exception, it might be hard-capped on the $178.1 million first apron.

Given the best way groups repeatedly within the luxurious tax are punished within the NBA’s new collective bargaining settlement, it seemingly would take an attractive participant to drive the Kings to forego their clear path to remaining beneath the tax even after their reported DeRozan acquisition.

For now, normal supervisor Monte McNair and the Kings’ entrance workplace can take a deep breath and bask within the aftermath of the nice and cozy reception Sacramento’s transfer for DeRozan obtained from followers within the 916.

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Tags: additionAdrian WojnarowskiaffectsBobby MarksChris HaynesDeMar DeRozanDeRozanDomantas SabonisKingsLuxury TaxluxurytaxMalik MonknbareportedSacramentoSituationthe KingsTrey Lyles
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